[amp_mcq option1=”Rs. 500″ option2=”Rs. 5000″ option3=”Rs. 10000″ option4=”Rs. 1000″ correct=”option1″]
The correct answer is: A. Rs. 500.
Section 24 of the RBI Act, 1934 states that the Reserve Bank may issue bank notes of such denominations, not exceeding one thousand rupees, as it may deem fit. However, the Reserve Bank has not issued any bank notes of denomination higher than Rs. 500 since 1978.
Option B is incorrect because the Reserve Bank has not issued any bank notes of denomination higher than Rs. 500 since 1978.
Option C is incorrect because the Reserve Bank has not issued any bank notes of denomination higher than Rs. 500 since 1978.
Option D is incorrect because the Reserve Bank has not issued any bank notes of denomination higher than Rs. 500 since 1978.